Comfort Systems USA Comments On Third Quarter Results.HOUSTON--(BUSINESS WIRE)--Oct. 4, 1999-- Comfort Systems USA, Inc. (NYSE NYSE See: New York Stock Exchange : FIX), announced today that based on currently available information, the Company expects to report sales for its third quarter ended September 30, 1999, in the range of approximately $360 to $375 million. This compares to sales for the fiscal 1998 third quarter of $232.4 million. Comfort Systems expects to report net income for the period in the range of $12.8 to $13.5 million, or $0.33 to $0.34 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. Net income for the prior-year period was $11.3 million or $0.33 per diluted share. The Company is analyzing its financial results and believes that they reflect lower than anticipated internal growth, partially as a result of a slowing in the growth of the construction industry due to shortages in both labor and specialty building materials Building materials used in the construction industry to create . These categories of materials and products are used by and construction project managers to specify the materials and methods used for . , which in turn impacted HVAC (Heating Ventilation Air Conditioning) In the home or small office with a handful of computers, HVAC is more for human comfort than the machines. In large datacenters, a humidity-free room with a steady, cool temperature is essential for the trouble-free installations. Results were also affected by Hurricane Floyd This article is about the 1999 hurricane. For other storms of the same name, see Tropical Storm Floyd (disambiguation). Hurricane Floyd was the sixth named storm, fourth hurricane, and third major hurricane in the 1999 Atlantic hurricane season. . "Our companies simply did not grow as quickly as expected," commented Fred Ferreira, Comfort Systems USA's Chairman and Chief Executive Officer. "From our vantage point, it appears that the construction industry is operating near capacity. With a significant amount of Comfort's business in new non-residential construction, our ability to install new HVAC systems has been affected." "Comfort's operations along the eastern seaboard were also impacted by the severe weather conditions surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. Hurricane Floyd," continued Mr. Ferreira. "We had temporary closings in a number of locations, as well as a temporary halt in construction projects as a result of the heavy rains, wind and flooding." Mr. Ferreira concluded, "We have grown our business over the past two years and expect growth to continue. While our backlog is strong and has continued to increase, it is not driving our internal growth at the same rate. Comfort companies with the largest increases in backlog are primarily in areas experiencing capacity constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. in the construction industry. Consequently, we expect to continue to be affected by this in the fourth quarter of 1999 and throughout 2000. Moreover, due to our commitment to maintaining the strength of our balance sheet, we anticipate that acquisition activity may slow as compared to 1998 and the first half of this year." The Company expects to announce its results for the third quarter on November 3, 1999. Comfort Systems USA is a premier provider of business solutions addressing workplace comfort, environments, processes and energy services, with more than 115 locations in 80 cities around the nation. Comfort Systems USA has annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenues of approximately $1.3 billion and is based in Houston. For more information, visit the Company's web-site at www.comfortsystemsusa.com. This press release contains forward- looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on the current plans and expectations of Comfort Systems USA, Inc. and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Important factors that could cause actual results to differ include, among others, risks associated with acquisitions and variations in stock prices, changes in government regulations, competition, and risks entailed in operations and growth of newly acquired businesses and other risks detailed in the Company's reports filed with the Securities and Exchange Commission. |
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